06:55 AM EDT, 05/19/2026 (MT Newswires) -- Agnico Eagle Mines (AEM.TO) has made a positive investment decision on the Hope Bay project in Nunavut, Canada, the company said on Tuesday.

The company has completed a preliminary economic assessment, which contemplates an underground mining operation supported by a 6,000-tonne-per-day processing facility with estimated annual gold production of between 400,000 and 435,000 ounces.

The study outlines an initial mine life of 11 years, with upside potential from regional exploration.

Initial development capital expenditures are estimated at about US$2.4 billion. Projected average total cash costs per ounce and all in sustaining costs per ounce are approximately $958 and $1,214, respectively.

In this initial phase, the Hope Bay project is expected to generate an after-tax internal rate of return of about 26%.

"The construction and redevelopment of Hope Bay will support the long-term sustainability of our Nunavut operating platform at between 800,000 ounces and one million ounces of annual gold production and represents the first major milestone toward delivering our targeted 20% to 30% production growth over the next decade,"said Agnico Eagle President and Chief Executive Officer Ammar Al-Joundi.